According to Microsoft around four million PCs in Australia are unprepared for the transition to Windows 11.

It says this could leave many organisations managing a fleet of devices that won’t receive software updates or critical security patches unless they opt to pay a per-user, per-month premium.

Without these updates, Windows 10 users will be vulnerable to newly discovered threats, potentially exposing systems to significant breaches and malware attacks.

ESET reports that around 32 million computers in Germany, or approximately 65% of household devices, currently run Windows 10. In comparison, Windows 11 is installed on just 33% of devices in Germany, roughly 16.5 million systems.

These figures align with data from StatCounter, which indicates that as of December 2024, nearly 63% of Windows users globally still rely on Windows 10, while only about 34% have transitioned to Windows 11.

The Steam Hardware & Software Survey reveals a more favorable outlook for Windows 11 among gamers, with 54.96% using Windows 11 compared to 42.39% still on Windows 10 as of the end of 2024.

While the Windows 11 upgrade offers numerous productivity enhancements, businesses must weigh the risks and costs of delaying the update against the potential vulnerabilities to their operations.

Kirat Khara, the Director of Distribution and Commercial for Lenovo ANZ, says that there are compliance risks of not upgrading that must be taken into consideration alongside the potential benefits.

“When a new operating system comes, it naturally brings a series of new features. And while they are important, there’s also a compliance issue to be taken into account,”

“Beyond technology teams, company directors and business leaders are liable for security incidents, ensuring you use supported software can be a critical step to mitigate risks,” says Khara.

At the onset of the pandemic, many businesses invested in new hardware to support the transition to remote work.

Due to current economic pressures, many organisations have extended the lifecycle of these devices beyond their original plans. Now, with those machines being at least four years old, some may no longer meet the requirements to run Windows 11.

“Many of those devices were purchased in a hurry as the way of most companies worked completely changed from one day to the other.” explains Khara.

“While those computers have been serviceable, the case for upgrading hardware is now strong as many older devices will not be able to run Windows 11, missing out on great new productivity features as well as the security updates that will make a lot of difference for most businesses.”

Organisations should view this as a strategic opportunity. Before selecting new devices, Khara advises planning for the future, particularly regarding the integration of AI into operations.

If AI is already a key tool or is expected to play a significant role, now is the time to ensure readiness for its adoption.

“Not all machines that can run Windows 11 will be ready for AI. Neural Processing Units (NPUs) are a relatively new innovation in PC processors and chips and it’s unlikely any machine that is more than a year old will be truly AI-ready,”

“Organisations will need to make platform decisions about Copilot+ PCs, AI PCs with NPUs and other computing platforms,” Khara says.

No significant platform change or technology project is without its risks. Service disruptions, lost productivity as employees adjust to new systems, and other challenges must all be taken into account. However, security should always remain the top priority.

“Not upgrading to Windows 11 brings its own risks,” says Khara. “To have access to the right security features and support will add operational costs to Windows 10 on top of the lost opportunities with the new features as competitors leapfrog you.”

While the shift to Windows 11 might seem like a straightforward technology project, Khara emphasizes that the transition should begin with a services-led approach.

This starts with a thorough assessment of the current environment to identify existing hardware, determine which legacy apps need to be supported, and review software licensing.

Next, a Windows 11 Proof of Concept is conducted to figure out the best way to manage the current fleet. This might involve repurposing hardware, upgrading certain devices, or retiring outdated equipment.

Following this, organisations must select a procurement model that suits their needs—whether that’s a CAPEX-based process, financing over time, or an “as a Service” procurement approach.

“The transition to Windows 11 is critical. In Australia, the IT ecosystem of distributors, channel partners, resellers and vendors all have vital roles to play in ensuring the upgrade is smooth and delivers the greatest possible value and prepares users for the future,” says Khara.

All upgrades carry some level of risk. But, as Khara says, there is a greater risk in not upgrading. Lenovo is working closely with its entire IT ecosystem to ensure there is a rigorous process that minimises the challenges and maximises the return on investment for the shift to Windows 11.

Microsoft has reaffirmed its commitment to Windows 11 and Copilot+ PCs and is encouraging all Windows 10 users to move to Windows 11 this year.

“All of the innovation arriving on new Windows 11 PCs is coming at an important time,” says Yusef Mehdi, Microsoft’s Executive Vice President and Consumer Chief Marketing Officer, recapping the launch of Copilot+ PCs and features. 

“Windows 10 will reach the end of its lifecycle on Oct. 14, 2025. After this date, Windows 10 PCs will no longer receive security or feature updates, and our focus is on helping customers stay protected by moving to modern new PCs running Windows 11.” Mehdi said.

For users unable to upgrade their devices from Windows 10, Microsoft provides extended security updates (ESU) for both businesses and consumers, though they come at a significant cost.

Businesses can purchase ESU for up to three years, with pricing set at $61 for the first year, $122 for the second year, and $244 for the third, totalling $427 per device over the three-year period.

For consumers, Microsoft offers a more affordable option with a one-year ESU program priced at $30 per device. However, the costs can quickly add up for households with multiple devices, making it a potentially expensive solution.